Regarding the zakah of the two metals, since dealing has shifted to paper and currency, how is it performed?
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The questioner : Regarding the zakah of the two metals, dealing in the two metals has ceased. Since it is not permissible to apply analogical reasoning in these matters, because dealing is in paper.
The Shaykh : Prepare yourself, the time is running late, yes.
The questioner : The paper, which is the dinars and the currency.
The Shaykh : Yes.
The questioner : So this is also estimated based on the ratio of gold and silver?
The Shaykh : It is so.
The questioner : Does the same apply to it regarding trade goods?
The Shaykh : No, these are not trade goods; these are bonds. These are not trade goods; these are like bonds. If a man wrote a bond for you for a hundred gold dinars, then the bond now...
The questioner : Yes, previously its value was greater than a hundred gold dinars.
The Shaykh : Correct.
The questioner : Because it does not equal anything.
The Shaykh : Correct, this involves either politics or economics or things of the people of economics that I know about, because now the Iraqi dinar was more expensive than the Jordanian dinar, and now it has become...
The questioner : Yes.
The Shaykh : One-tenth or less.
The questioner : So, in relation to gold, it means it is not permissible to apply analogical reasoning in relation to gold, as long as it rises and falls, because it is not fixed with gold and silver.
The Shaykh : We do not apply analogical reasoning; rather, we say these are bonds, and we have known since ancient times that every paper currency was equal to a preserved gold value in the bank.
The questioner : Yes, previously. Now this has ceased.
The Shaykh : Very well.
Another questioner: ...
The questioner : Yes.
The Shaykh : No problem, this has ceased. What has taken its place? The question now clarifies this: does the paper, which is the paper currency, have intrinsic value?
Another questioner: ... nominal.
The questioner : It does not have intrinsic value.
The Shaykh : Okay, so what do we consider it to be? If it does not have intrinsic value, what do we consider it to be, if we do not consider it as bonds?
Another questioner: The same as paper currency, meaning.
The questioner : ... .
The Shaykh : The same as paper currency, yes, it is...
The questioner : Yes, the question is: suppose I lent a man, for example, a sum of a hundred dinars of gold by bond.
The Shaykh : Okay.
The questioner : And after fifty years I demanded it from him, and we said the value of the bond has dropped; this statement is not accepted from him.
The Shaykh : No, it is not accepted.
The questioner : When people bought a hundred dinars previously, for example, ten years ago.
The Shaykh : Yes.
The questioner : It was equal to a hundred gold dinars.
The Shaykh : Okay.
The questioner : Now a hundred dinars do not equal five gold dinars.
The Shaykh : Correct.
The questioner : So it changed and shifted.
The Shaykh : Correct, Professor, the reality now.
The questioner : Yes.
The Shaykh : A man borrowed a hundred Iraqi dinars from a person when the Iraqi dinar was more expensive than the Jordanian dinar, then this war occurred and devastated the Iraqi dinar. Does he give him a hundred Iraqi dinars today?
Another questioner: Yes, he gives him.
The Shaykh : A hundred Iraqi dinars; does he give him a hundred dinars, or does he give him what was equal to the value on the day he borrowed?
Another questioner: The principle is that he gives him what it was on the day he borrowed.
The Shaykh : Okay, so.
The questioner : Okay, Shaykh, now...
The Shaykh : Wait a moment.
The questioner : ... Yes, this issue is very thorny; this issue needs to be settled, meaning.
The Shaykh : Settled like this: every currency can be determined according to the surrounding circumstances. For example, I believe that these Americans are the ones who will raise the value of gold and lower it with their currency, and this is among the matters intended to crush the peoples and subject them to general American policy. But the fact that this paper goes down and up, first, does not take it out of being without intrinsic value; rather, its value is the estimated value. As for this estimation differing from one time to another, this is not in human control. Therefore, we must keep in our minds this fact: these papers have no intrinsic value. In the previous example we gave, now suppose, as happened in the previous World War, the German Mark bank collapsed completely. So the one who had borrowed millions of marks from the big merchants would deliver to the lender these millions, which are simple paper, having a value greater than them. No sane person who knows the justice of the wise Shari'ah says this. Now, if we suppose that a currency is completely disabled and falls due to the fall of its state, like Syria, for example, or others, what do those who lent to people do? It is necessary to estimate the value of this paper currency at the time of registration, so that it is repaid, even after years.
The questioner : It is estimated in relation to gold, or silver.
The Shaykh : In relation to gold, because silver now is also not a field for estimation.
Another questioner: Even the time is late.
The questioner : I mean, a little distance remains.
The Shaykh : Prepare yourself, the time is running late, yes.
The questioner : The paper, which is the dinars and the currency.
The Shaykh : Yes.
The questioner : So this is also estimated based on the ratio of gold and silver?
The Shaykh : It is so.
The questioner : Does the same apply to it regarding trade goods?
The Shaykh : No, these are not trade goods; these are bonds. These are not trade goods; these are like bonds. If a man wrote a bond for you for a hundred gold dinars, then the bond now...
The questioner : Yes, previously its value was greater than a hundred gold dinars.
The Shaykh : Correct.
The questioner : Because it does not equal anything.
The Shaykh : Correct, this involves either politics or economics or things of the people of economics that I know about, because now the Iraqi dinar was more expensive than the Jordanian dinar, and now it has become...
The questioner : Yes.
The Shaykh : One-tenth or less.
The questioner : So, in relation to gold, it means it is not permissible to apply analogical reasoning in relation to gold, as long as it rises and falls, because it is not fixed with gold and silver.
The Shaykh : We do not apply analogical reasoning; rather, we say these are bonds, and we have known since ancient times that every paper currency was equal to a preserved gold value in the bank.
The questioner : Yes, previously. Now this has ceased.
The Shaykh : Very well.
Another questioner: ...
The questioner : Yes.
The Shaykh : No problem, this has ceased. What has taken its place? The question now clarifies this: does the paper, which is the paper currency, have intrinsic value?
Another questioner: ... nominal.
The questioner : It does not have intrinsic value.
The Shaykh : Okay, so what do we consider it to be? If it does not have intrinsic value, what do we consider it to be, if we do not consider it as bonds?
Another questioner: The same as paper currency, meaning.
The questioner : ... .
The Shaykh : The same as paper currency, yes, it is...
The questioner : Yes, the question is: suppose I lent a man, for example, a sum of a hundred dinars of gold by bond.
The Shaykh : Okay.
The questioner : And after fifty years I demanded it from him, and we said the value of the bond has dropped; this statement is not accepted from him.
The Shaykh : No, it is not accepted.
The questioner : When people bought a hundred dinars previously, for example, ten years ago.
The Shaykh : Yes.
The questioner : It was equal to a hundred gold dinars.
The Shaykh : Okay.
The questioner : Now a hundred dinars do not equal five gold dinars.
The Shaykh : Correct.
The questioner : So it changed and shifted.
The Shaykh : Correct, Professor, the reality now.
The questioner : Yes.
The Shaykh : A man borrowed a hundred Iraqi dinars from a person when the Iraqi dinar was more expensive than the Jordanian dinar, then this war occurred and devastated the Iraqi dinar. Does he give him a hundred Iraqi dinars today?
Another questioner: Yes, he gives him.
The Shaykh : A hundred Iraqi dinars; does he give him a hundred dinars, or does he give him what was equal to the value on the day he borrowed?
Another questioner: The principle is that he gives him what it was on the day he borrowed.
The Shaykh : Okay, so.
The questioner : Okay, Shaykh, now...
The Shaykh : Wait a moment.
The questioner : ... Yes, this issue is very thorny; this issue needs to be settled, meaning.
The Shaykh : Settled like this: every currency can be determined according to the surrounding circumstances. For example, I believe that these Americans are the ones who will raise the value of gold and lower it with their currency, and this is among the matters intended to crush the peoples and subject them to general American policy. But the fact that this paper goes down and up, first, does not take it out of being without intrinsic value; rather, its value is the estimated value. As for this estimation differing from one time to another, this is not in human control. Therefore, we must keep in our minds this fact: these papers have no intrinsic value. In the previous example we gave, now suppose, as happened in the previous World War, the German Mark bank collapsed completely. So the one who had borrowed millions of marks from the big merchants would deliver to the lender these millions, which are simple paper, having a value greater than them. No sane person who knows the justice of the wise Shari'ah says this. Now, if we suppose that a currency is completely disabled and falls due to the fall of its state, like Syria, for example, or others, what do those who lent to people do? It is necessary to estimate the value of this paper currency at the time of registration, so that it is repaid, even after years.
The questioner : It is estimated in relation to gold, or silver.
The Shaykh : In relation to gold, because silver now is also not a field for estimation.
Another questioner: Even the time is late.
The questioner : I mean, a little distance remains.